Cambria Suites by Choice Hotels: Lower-Upscale All-Suites Brand Designed to Maximize ROI for Developers.

LOS ANGELES -- Capitalizing on strong market demand for a lower-upscale lodging product as well as its own capacity to build brand loyalty in a highly competitive consumer marketplace, worldwide lodging franchise giant Choice Hotels International (NYSE:CHH) today launched Cambria Suites, a lower-upscale, select-service all-suites hotel brand designed to maximize return on investment for developers.

"All roads -- consumer preferences, business and leisure travel trends, the short- and long-term development landscape and our own brand portfolio -- lead to the launch of Cambria Suites," said Charles A. Ledsinger, Jr., president and CEO of Choice Hotels. "The profit potential represented by this brand, in today's marketplace and with the powerhouse support system offered by Choice Hotels, is significant. We are thrilled to welcome this lower-upscale, all-suites product to our portfolio of established brands."

Cambria Suites: The Segment

Cambria Suites' introduction as a lower-upscale lodging product could not be at a more opportune time for development within the segment. According to Smith Travel Research, for the 12 months ending in September 2004, demand in the segment has increased 5.6 percent, compared with a 1.4 percent increase in supply for the same time period. RevPAR forecasts for the segment show increases through 2006, and existing pipelines indicate a healthy appetite among developers for product that fits into the lower-upscale category.

Cambria Suites: The Product

Enter Cambria Suites. "By virtue of its design, amenities and services, Cambria Suites is uniquely positioned to deliver guests," said Ledsinger.

Each hotel will typically offer 100 to 150 units - each 25 percent larger than industry standard -- with a stylish, contemporary design. All rooms will be suites, each with separate living/work room and bedroom areas. Inroom amenities will include luxury bedding and linens; plasma TVs; refrigerator and microwave; movable, ergonomic desk; and high speed wireless Internet access. Upgraded suites will also be available. Public spaces at Cambria Suites brand hotels will be open, contemporary and inviting. Lobbies will include club lounge seating and a large screen "media wall"; a lounge serving liquor, wine, beer and non-alcoholic beverages; and a coffee bar serving premium coffees. Food and beverage options will also include a paid-for hot and cold breakfast buffet and a 24/7 convenience store stocked with food and sundry items. Each hotel will also include an expanded fitness facility, an indoor pool and more than 1,000 square feet of meeting space. Additional business services include onsite FAXing, copying and printing as well as multiple lobby power/Internet ports and high speed wired and wireless Internet access.

Cambria Suites' exterior design will be distinguished by rich, detailed use of brick, stone and stainless steel accents, with a dramatic, glass-walled signature tower containing the two-story lobby.

The cost per key to develop Cambria Suites is estimated at $63,000, excluding land and soft costs. Average daily rate is projected to be in the $100 range.

According to Ledsinger, a dedicated team of franchise sales professionals has been recruited and will focus solely on the development of Cambria Suites. "This stellar group of top-notch professionals knows this segment, this industry and their territories inside and out," he said.

Cambria Suites: The Guest

According to Ledsinger, Cambria Suites is designed to appeal primarily to business travelers, although the brand's amenities are well suited to leisure travel as well. "At each stage of its conception and development, Cambria Suites has been designed to cater to the specialized needs of the business traveler," Ledsinger said. "The Cambria Suites guest works hard, plays hard - and is willing to pay more for a personalized, upgraded lodging experience.

"The appeal of Cambria Suites is that it more than satisfies the needs of traditional travelers while also catering to multi-tasking, active, experiental travelers who will appreciate the brand's contemporary styling and its functional attributes," Ledsinger said.

Cambria Suites: The Power of Choice

Finally, Ledsinger said, the launch of Cambria Suites is also a testament to the powerful marketing and field support infrastructure represented by worldwide lodging franchisor Choice Hotels. "This brand may be minutes old, but the systems and programs supporting it have been in place for more than 60 years," he said. "From its launch, Cambria Suites benefits from the $50 million in marketing support, $1.4 billion in annual gross room revenue from the company's central reservations system, 3.4 million Choice Privileges frequency program members, industry-leading field support, technological prowess and training and operations expertise offered by Choice Hotels."

San Francisco-based Laurel Group worked with Choice Hotels in development of the brand name and logo for Cambria Suites.

Choice Hotels International is one of the world's largest lodging franchisors, marketing more than 5,000 hotels open or under development in over 40 countries under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, MainStay Suites, Econo Lodge, and Rodeway Inn brand names. For more information on Choice, visit the company's web site at www.choicehotels.com.

Choice Hotels, Choice Hotels International, Cambria Suites, Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, MainStay Suites, Econo Lodge, Rodeway Inn and ChoiceHotels.com are proprietary trademarks and service marks of Choice Hotels International.

(C) 2005 Choice Hotels International, Inc. All rights reserved.